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In trading on Thursday (19), crude oil futures prices closed lower. WTI crude oil first experienced a drop on day 4. This was due to the continued increase in the number of new crown boxes in the US and the world, and the crude oil demand outlook was even more frustrated, hiding the positive news about the vaccine.
Analysts believe that unity within OPEC is worrying, which also constitutes pressure on prices.
At the same time, natural gas futures prices fell sharply because the EIA report showed that the increase in supply last week was higher than expected.
- The price of WTI crude oil futures for December delivery fell 8 cents, or almost 0.2%, to close at US $ 41.74 a barrel. The futures price has closed higher for the last 3 days.
- WTI crude oil futures for January delivery fell 11 cents, or nearly 0.3%, to close at $ 41.90 a barrel.
- The price of Brent crude futures for January delivery fell 14 cents, or nearly 0.3%, to settle at $ 44.20 a barrel.
Crude oil WTI and Brent closed at their highest point since early September on Wednesday, but analysts believe the new anti-epidemic lockdown measures will put pressure on the market.
New York City announced Wednesday that all public schools would be closed because the city’s virus test positive rate averaged 3% on Day 7, which is a critical point for keeping schools open. In most of the United States (including rural and urban areas), the number of cases has increased and the medical system has come under great pressure.
Robbie Fraser, head of the global research and analysis department at Schneider Electric, said: “This week, new epidemic prevention measures in several states in the United States have increased significantly because the number of cases has reached a record in the eve of traditional travel vacations. “
“There is no doubt that the number of travelers this year will be much lower than normal, although it is not clear how low it will be.”
Experts estimate that even if gas prices this season are the cheapest level since 2016, compared to last year, the number of passengers in the week before Thanksgiving will continue to fall by as much as 45%.
But there is also positive news: A report Thursday afternoon noted that the United States will soon resume negotiations on a rescue plan. Senate Majority Leader Mitch McConnell agreed to restart negotiations with Democrats on a possible aid package.
At the same time, OPEC + showed signs of internal tension. UAE officials who did not want to be named reportedly questioned the benefits of joining OPEC.
The OPEC and OPEC + meetings will be held on November 30 and December 1 to discuss whether to extend the current production reduction plan or relax production restrictions in January as originally planned.
Commodities analyst Eugen Weinberg reported that “seeing production rise in other regions, the UAE, one of the core OPEC countries, appears unwilling to sustain production cuts.”
Since Russian production has also increased, the burden on Saudi Arabia will be heavier.
“If OPEC can rebuild production discipline, it will increase market confidence in the organization. This means that Saudi Arabia’s shares may be the same as in March, which means that it is very likely to launch another price war.” . A month-long price war was launched between Saudi Arabia and Russia and flooded the market with a large quantity of crude oil.
Other energy raw materials
- The price of natural gas futures for December delivery fell 12 cents, or 4.4%, to settle at $ 2,592 per million Btu.
The EIA report shows that last week (11/13) natural gas inventories increased by 31 billion cubic feet. According to the S&P Global Platts survey, analysts expect natural gas inventories to grow by an average of 22 billion cubic feet.
- The price of gasoline futures for December delivery fell less than 0.1% to close at $ 1.1625 a gallon.
- Hot oil futures for December delivery rose 0.5% to settle at $ 1.2707 a gallon.
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